Brazil Bovespa (57199):
Intermediate trend: Bearish
Anticipated structural weakness at 65017(ref review dated 1st July). As against initial target of 61k region it dipped below 57k before settling at 57.2k on Friday.
The month witnessed consistent selling on every bounce. In the process, it had breached the upward parallel channel on the monthly chart. The repercussions will be a sever downtrend lasting several months.
In the extreme near term, expect a technical bounce back towards 60.5-61k (maximum), provided index closes above 57.8k levels. Else, steady down move towards 52-53k in the next few weeks.
Anticipated structural weakness at 65017(ref review dated 1st July). As against initial target of 61k region it dipped below 57k before settling at 57.2k on Friday.
The month witnessed consistent selling on every bounce. In the process, it had breached the upward parallel channel on the monthly chart. The repercussions will be a sever downtrend lasting several months.
In the extreme near term, expect a technical bounce back towards 60.5-61k (maximum), provided index closes above 57.8k levels. Else, steady down move towards 52-53k in the next few weeks.
